Top 12 IRS Scams of 2025 and How to Safeguard Yourself
It’s important to understand one fundamental truth:
Tax scammers are continuously evolving.
They are enhancing their tactics, becoming more sophisticated, and dangerously skilled at impersonating trustworthy entities, especially with AI technology capable of mimicking voices, emails, and even your tax professional’s writing style.
The IRS is fully aware of these developments. As a proactive measure, they release a list each year that highlights the most prevalent and perilous scams aimed at unsuspecting taxpayers.
This list is known as the Dirty Dozen.
Think of it as your annual bulletin.
Here’s a closer look at what you need to be cautious of in 2025—and how to ensure your and your loved ones’ protection against these threats.
Why Staying Informed is Crucial (Even If You Avoid Suspicious Links)
You might assume, This would never happen to me.
However, statistics suggest otherwise.
Scams are rapidly advancing. Many are engineered to bypass your intuition.
They don’t just deceive you—they manipulate you. AI enhances their credibility, and technology makes them harder to trace. Notably, the IRS will not reach out to you via phone, email, or text initially.
So indeed—this article is intended for you.
Your parents, your children, and even that friend who still uses “123456” as a password.
The Dirty Dozen: Top Tax Scams of 2025
1. AI-Enhanced Phishing Emails and Texts
The most alarming trend this year?
Fraudsters are leveraging AI to craft highly convincing emails and texts that mimic the IRS, your tax software, or even your accounting firm.
These messages are adorned with official-like logos and personal details, offering clickable “portals,” and creating a sense of urgency to spur rash actions.
Protection Strategy:
Never trust links in unsolicited IRS communications. The IRS does not initiate contact via email or text. Always navigate directly to IRS.gov or connect with your tax advisor.
2. Deceptive “Refund Assistance” Ads on Social Media
While browsing Instagram, you might encounter an ad proclaiming:
“Qualify for a $10K refund—even without filing taxes!”
Sound too good to be true? It is.
These ephemeral “services” submit false returns using your data. Although you might briefly receive funds, the IRS will reclaim them later, potentially adding penalties.
Protection Strategy:
Engage only with licensed, validated tax professionals. If a refund seems unusually large, question its legitimacy.
3. Offer in Compromise Scams
An Offer in Compromise is a legitimate IRS program aiding taxpayers with significant debts to settle for less than owed.
However, unscrupulous companies exploit this, promising guaranteed debt forgiveness, demanding upfront fees, and then disappearing.
Protection Strategy:
If you owe the IRS, consult a tax professional familiar with your complete financial situation—avoid call centers that may have acquired your data from debt listings.
4. Fraudulent Charities
When disasters occur and make headlines, expect “charities” soliciting donations via emails, texts, or even platforms like GoFundMe.
While some are genuine, others are skillfully counterfeited.
Protection Strategy:
Verify a charity’s authenticity through the IRS Tax-Exempt Organization Search. Bona fide charities won’t request gift card or cryptocurrency donations.
5. Employee Retention Credit (ERC) Deceptions
Persisting in 2025, scammers are still promoting fraudulent ERC claims, causing issues for some business proprietors.
These third-party entities submit false claims on your behalf. Although you may initially receive a payout, the IRS will later demand it back with interest.
Protection Strategy:
If someone promises eligibility without a thorough record review, take that as a signal to cease interaction.
6. Targeted Phishing for Tax Professionals
This tactic is aimed at professionals.
Hackers utilize counterfeit IRS emails to infiltrate a tax pro’s entire client database.
One erroneous click exposes all your data.
Protection Strategy:
Inquire about your tax preparer’s security measures. You have a right to understand how your information is secured.
7. Misleading Tax Advice on TikTok and YouTube
“Avoid taxes altogether—just start an LLC and deduct everything.”
This isn’t advice. It’s entrapment.
It’s steering younger taxpayers toward audits and fines.
Protection Strategy:
Ensure your sources are credible. Mere ownership of a microphone and a green screen doesn’t equate to tax code expertise.
8. Unregistered Preparers
These individuals prepare returns but avoid signing them.
The reason? Their activities are unlawful. They manipulate figures and amplify credits and disappear when the IRS seeks accountability.
Protection Strategy:
Ensure that your preparer signs your return and includes their PTIN (Preparer Tax Identification Number). If they refuse, find someone else.
9. Fraudulent “IRS Agent” Calls
Though persistent, this scam has evolved—now automated and more aggressive.
Scammers threaten imprisonment, asset forfeiture, or “immediate legal action” demanding payment in gift cards. (This demand itself is a warning sign.)
Protection Strategy:
Terminate the call, report it to TIGTA, and remember: the IRS does not make unsolicited calls or demand payment by such means.
10. Exaggerated Tax Benefits
Scammers promote imaginary deductions, credits, and loopholes to increase refunds, often targeting energy credits and education expenditures.
If it appears fabricated, it likely is.
Protection Strategy:
Claim only what can be substantiated. If your tax advisor exhibits “creativity” that puzzles you, demand clarity.
11. Social Security Number Fraud
Cybercriminals exploit stolen or guessed SSNs to file fraudulent returns ahead of the authentic taxpayer.
Victims generally discover the fraud when their genuine return is flagged as “duplicate.”
Protection Strategy:
File your taxes early, consider procuring an Identity Protection PIN from the IRS, and use multi-factor authentication on tax software.
12. Invalid Fuel Tax Credit Claims
This credit is exclusively for off-highway business use (ideal for farmers, not daily commuters). Yet, scammers still present it as a “hidden refund.”
Protection Strategy:
If anyone insists, “The IRS owes you for fuel,” it’s likely a scam. Never sign unfamiliar documents.
Conclusion: Be Vigilant. Be Questioning. Be Informed.
You don’t need to live in paranoia but maintaining awareness is vital.
The good news: scammers depend on ignorance.
The more individuals you inform, the more challenging it becomes for scammers to succeed.
Steps to Protect You and Your Family:
Disseminate this article to those at risk (e.g., aging relatives).
Implement multi-factor authentication on financial accounts.
Discuss ID verification and data protection measures with your tax professional.
Report dubious incidents to the IRS and FTC.
When uncertainty arises, always pause and confirm before clicking, making payments, or sharing information.
Seek Expert Guidance on Your Returns and Fraud Prevention
We specialize in reviews, filings, and fraud prevention—this is our area of expertise, not yours.
Let’s devise a defensive strategy before the next phishing attempt arises.
Reach out to our office to schedule a consultation.
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